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Use this information for Timmer Corporation to answer the questions that follow.
Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 12,000 units of product and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000, and fixed selling and administrative costs were $6,000.
-What would Timmer's net income be for the year using absorption costing?
Controllable
Refers to costs or elements within a business that can be directly managed, influenced, or altered by decisions of management.
Noncontrollable
Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.
Flexible Budget
A budget that adjusts or varies with changes in the volume or activity level of a company.
Master Budget
A comprehensive financial planning document that consolidates all of the smaller budgets within a company into one overview, showing the total planned activities for an upcoming period.
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